(AGE) Alligator Energy Limited

Announcements

General Overview

About Alligator Energy Limited

The company offers shareholders strategic exposure to a highly prospective uranium exploration tenement package in one of the world’s premier uranium provinces for large, high-grade resources with a pipeline of exciting prospects to test, each with the potential to add to Alligator’s high-grade uranium resource base

The company’s objective is to deliver outstanding value through exploration success and resource growth while securing credible development partnerships and pathways.

The ARUP is a uniquely under-explored, world class, high grade uranium province, located approximately 250km east of Darwin, the capital city of the Northern Territory.

The province hosts several world class, high grade uranium deposits, including the Ranger No 1 and No 3 deposits which have to date produced over 300Mlb of U3O8 for export and the Jabiluka deposit, which is one of the world’s largest uranium deposits, having a resource in excess of 300Mlb U3O8 at grades of 5,000ppm U3O8. The Province is located within the Northern Territory which has supported uranium mining for over thirty years through an established regulatory framework which offers a high degree of certainty for business and stakeholders.

The company currently has three active project areas covering in excess of 1,000 sq km in the ARUP. These three project areas, Tin Camp Creek, Beatrice (JV with Cameco) and Mamadawerre (JV Cameco), each contain known high grade uranium occurrences and favorable geological/structural environments as well as the Caramal Resource (6.5Mlb U3O8) which was defined by Alligator in 2012.

The company has also established a strong strategic position in the ARUP with over 1000km2 of Exploration Licence applications. Alligator’s geologists and technical advisors have substantial experience in the Alligator Rivers Province and have continued to build on this technical and operational advantage through an innovative approach to exploration supported by a strong commitment to R&D.

Quality Projects – Quality Targets – High Grade Uranium

Alligator is exploring a highly prospective tenement holding covering over 1000sq km in the ARUP. The three active Project areas are the Tin Camp Creek Project, the Beatrice JV and the Mamadawerre JV.

Importantly, these tenements cover the margins of the McArthur Basin (Kombolgie Sandstone) under which little systematic exploration has been undertaken. Alligator considers these areas to be analogous to the Athabasca Basin in Canada where substantial world class uranium deposits have been discovered at the base of the sandstone basin.

Over thirty prospective target zones have been identified on these project areas and will be assessed through a disciplined exploration approach and innovative exploration techniques.

The company also holds an additional 1000sq km of Exploration Licence applications in the terrane which it is steadily progressing through the Aboriginal Land Rights Act (ALRA) process.

Projects

Tin Camp Creek Project

Since 2011, Alligator has defined the Caramal Resource (6.5Mlb U3O8 at 3100ppm U3O8) and intersected uranium mineralisation at a number of prospects in the Project area.

Best recent and historic intersections on the Project area include:

Mintaka (2012) – 5m @ 1240ppm U3O8

Gorrunghar – 5m @ 2644ppm U3O8

NE Myra (2014) – 3m @1489ppm U3O8

South Horn – 15m @ 4700ppm U3O8

Broad areas of distinctive chlorite alteration and multiple near surface high grade uranium occurrences highlight the prospectivity of the Project area.

Up until the beginning of 2014 the majority of exploration had been undertaken in the vicinity of near surface occurrences such as Caramal, South Horn and NE Myra. In 2014, the company began to employ its newly developed techniques to explore under the extensive areas covered by Kombolgie Sandstone.

Caramal Resource

A JORC compliant inferred resource of 944kt at 3100ppm U3O8 was announced in April 2012 for the Caramal Deposit. The deposit is hosted by the lower Cahill Formation, the same rocks that host the world class Ranger and Jabiluka deposits. The deposit exhibits marked similarities in lithology, alteration and mineralogy to the Ranger deposits. While potential remains for additional smaller resources in the broader Caramal structural trend, the company’s current focus is on targets with potential for >100Mlb U3O8 deposits.

Beatrice

In December 2014, Alligator entered into a Joint Venture with Cameco Australia Pty Ltd (Cameco) to farm-in to Cameco’s Beatrice Project in the Alligator Rivers Uranium Province where by Alligator may earn a 51% interest in the project by expending $250,000 by 2 July 2016. The Beatrice Project is comprised of ELs24291 and 26796 and ELAs 26793, 26794, 26795 (held 100% by Cameco) and is located to the immediate south of the Tin Camp Creek Project area. The total project area covers 481km2.

The Beatrice JV Project tenements form a contiguous land holding with the TCC Project area that will allow Alligator to pursue extensive prospective structures and mineralised trends identified by exploration on the adjacent TCC Project area.

The project area contains known uranium occurrences including the historic Beatrice prospect. Limited drilling on this prospect by Cameco in 2009 returned a best intersection of 19 metres at 3,626ppm U3O8 (Alligator 2015 re-assay). This uranium mineralisation is spatially associated with a Sub Audio Magnetics (SAM) anomaly and a sub-circular surface radiometric anomaly. This Beatrice SAM anomaly has a 500m strike length which is untested. The surface radiometric anomaly extends south from the area drilled and also remains untested.

The Beatrice Prospect is but one of a number of highly prospective target areas on the Beatrice JV Project area.

A series of outstanding targets have been identified for systematic exploration characterised by widespread uranium and radiometric anomalies associated with major structural trends and the interpreted presence of the lower Cahill Formation.

For example, anomalous uranium and strong radiometric anomalies occur along the 30km strike length of the Beatrice Fault zone between the Violet Prospect (21m @412ppm U3O8) and the South Horn Prospect (14m @ 4,700ppm U3O8) on the adjoining Tin Camp Creek Project area.

The Beatrice Project was identified by Alligator as a priority area for exploration, initially based on the presence of prospective regional structures which host uranium mineralisation at South Horn and Mintaka on the adjacent Tin Camp Creek Project. Work undertaken by Alligator in 2014, most notably SAM geophysical surveys and an extensive radiogenic pathfinder geochemical survey highlighted these broad structural zones which extend from the Orion South area into the Beatrice Prospect area.

Mamadawerre Project

The Mamadawerre Project area consists of EL27251 held 100% by Northern Prospector Pty Ltd (a 100% owned subsidiary of Alligator Energy Ltd) and the adjoining Mamadawerre JV (EL24992) which is a joint venture between Cameco Australia Pty Ltd (Cameco) and Alligator whereby Alligator may earn up to 90% of the Mamadawerre JV project. Previous exploration by Alligator and Cameco has identified outcropping uranium mineralisation along the major Steptoe Fault system within Kombolgie Sandstone.

Rock chip sampling along the Steptoe fault zone has to date identified uranium assays up to 9,389ppm U3O8 with discontinuous uranium anomalism (>500ppm) occurring over a strike length of 3km.

While this surface mineralisation is indicative of a fertile structure, Alligator’s prime target in this area is the intersection of this fault with underlying basement rocks, a zone which remains largely unexplored. This fault zone has a strike length of over 20km on the Mamadawerre Project area and extends another 8km west where it hosts the Stevens prospect on Alligator’s contiguous tenement application ELA28293. Historical reports show the Stevens prospect to be anomalous in both uranium and precious metals with rock chips exceeding in 4% U3O8 and drilling results including 1m @ 1900ppm U3O8, and 5m @ 6.06g/t Au, 1.58g/t Pt and 2.2g/t Pd.

Important Information

The General Overview, Services, Products and Projects information for this profile was last edited on 09 Jun 2015.

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